The Analytical Overview of the Main Currency Pairs on 2017.10.13

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.18585

Open: 1.18298

% chg. over the last day: -0.24

Day's range: 1.18179 – 1.18515

52 wk range: 1.0341 – 1.2069

At the moment, there is a correction of the EUR/USD quotes after a significant increase since the beginning of this week. Support for the US dollar is provided by optimistic economic reports. In September, the producer price index increased from 0.2% to 0.4%. Over the past week, the number of initial applications for unemployment benefits fell by 15,000 to 243,000. At the moment, the key trading range is 1.18250-1.18500. Investors took a wait-and-see attitude before the release of important statistics on the US economy. We recommend opening positions from the key levels.

News background on the US economy for 2017.10.13:

- An inflation report at 15:30 (GMT+3:00);

- Statistics on retail sales at 15:30 (GMT+3:00);

- Indices of expectations and moods of consumers from the University of Michigan at 17:00 (GMT+3:00).

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram has begun to decline and has moved to the negative zone, which indicates a "bearish" sentiment on EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which sends a signal to sell EUR/USD.

Trading recommendations

Support levels: 1.18250, 1.18000

Resistance levels: 1.18500, 1.18750

If the statistics from the US is optimistic, we expect the EUR/USD quotes to fall. The movement is tending to 1.17750-1.17500.

An alternative may be the growth of the EUR/USD currency pair to the level of 1.18750-1.19000.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32177

Open: 1.32603

% chg. over the last day: +0.31

Day's range: 1.32564 – 1.33138

52 wk range: 1.1450 – 1.3618

Yesterday, the GBP/USD currency pair maintained the local support at 1.31350, which triggered the bullish sentiment. There was information that the EU could offer a softer Brexit. Today, the pound rally has continued. The mark 1.32750 is already a "mirror" support. The nearest resistance is at the level of 1.33250. We are waiting for statistics on the US economy.

The publication of important economic reports from the UK today is not planned.

Indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive zone and above the signal line, which indicates further growth of GBP/USD.

Stochastic Oscillator is near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy GBP/USD.

Trading recommendations

Support levels: 1.32750, 1.32250

Resistance levels: 1.33250, 1.33750

If the price fixes above 1.33250, we expect further growth of GBP/USD. The target movement level is 1.33750-1.34000.

Alternative option. If GBP/USD overcomes the 1.32750 mark, you need to look for entry points in the market to open short positions. The movement is tending potentially to 1.32250.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.24558

Open: 1.24738

% chg. over the last day: +0.14

Day's range: 1.24543 – 1.24830

52 wk range: 1.2059 – 1.3795

At the moment, the technical pattern on the USD/CAD currency pair is ambiguous. The trading instrument is in a sideways trend. The following key levels of support and resistance can be identified: 1.24600 and 1.24850, respectively. Participants of the financial markets expect economic reports from the United States. We recommend paying attention to the oil quotations dynamics.

The news background on Canada's economy is calm.

The signals of the indicators are different. The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located near the 0 mark.

Stochastic Oscillator has come out of the oversold zone, the %K line is above the %D line, which gives a signal to buy USD/CAD.

Trading recommendations

Support levels: 1.24600, 1.24350

Resistance levels: 1.24850, 1.25250

If the statistics from the US turns out to be positive, we recommend considering buying USD/CAD. The movement is tending to 1.25000-1.25250.

Alternatively, USD/CAD may drop to the level of 1.24350-1.24000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.489

Open: 112.288

% chg. over the last day: -0.23

Day's range: 111.858 – 112.300

52 wk range: 99.53 – 118.67

Today in the Asian trading session, sales prevailed on the USD/JPY currency pair. At the moment, the price is testing a round level of 112.000. Economic reports from the US can significantly affect the further alignment of forces in USD/JPY. Positions must be opened from the key levels. We also recommend paying attention to the US government bonds yield.

The news background on the economy of Japan is calm today.

Indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is located in the negative zone and continues to decline, which signals a bearish sentiment on USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/JPY.

Trading recommendations

Support levels: 112.000, 111.500

Resistance levels: 112.400, 112.750, 113.150

If economic reports from the US are optimistic, a bullish sentiment may prevail on the USD/JPY currency pair. The target movement level is 112.400-112.750.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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